Three Possible Decision Alternatives to Address the Problem regarding the Whistles - Assignment Example

JDT2 Human Resources Task 2 Chris Barger JDT2 2/2013 A1. Present three possible decision alternatives to address the problem regarding the whistles. The quality assurance department manager has raised concerns after a metal whistle included in the toy collection did not pass the routine testing due to small traces of lead. It is our responsibility to ensure no harm is caused to the consumer and any other user; In order to maintain integrity, below are three potential alternatives that could be considered: Potential alternatives to be considered: 1. Destroy the faulty whistles before making new whistles with reduced amount of lead. Ship the approved toys and delay the shipping of the new whistles as communicate to customers on your website. Give employees refresher courses. 2. Ship out the toys that passed the routine test without including the whistles. Then bring in external experts to assist in product development and training employees. Hold a press conference to communicate to the public and brief them on the way forward. Market the new improved product. And interact with customers on the website responding to all their queries. 3. Pull out whistles from the market rather invest more in the toys that pass the routine tests and are less risky. Put up communication in the company website. A1a. Explain the process or method that you used for selecting each of the alternatives. The method used to come up with these alternatives is the Problem solving via decision making process. In problem solving we perceive and resolve a gap between a present situation and a desired goal. While in decision making an alternative is selected from options generated and evaluated to reach the desired goal. This method involves at least four phases: An Input phase in which a problem is perceived and an attempt is made to understand the situation or problem; A Processing phase in which alternatives are generated and evaluated and a solution is selected; An Output phase which includes planning for and implementing the solution; and a review phase in which the solution is evaluated and modifications are made, if necessary (Bransford & Stein, 1984) A1b. Discuss the advantages and disadvantages of each alternative. Alternative 1: This alternative proposes destroying the faulty whistles and shipping the approved toys and communicating with customers on the company website on the decision. In addition, this alternative will include providing the employees with refresher courses which will help in adjusting with the new measures. Advantages of alternative 1: This alternative will help increase the customer satisfaction by making sure that the products are on the shelves on time. Making new whistles with reduced amount of lead will reduce toxicity by reducing the lead in the whistles hence making it user friendly to the consumers. Communicating with the customers on the company website will help in building a good relationship between the clients and the business. By disclosing the defects and other relevant facts gives the client better attitude to relate positively with the business. Disadvantages of alternative 1: The cost of production increases since initial production will be disposed and new raw materials required. By trying to ensure timely shipment, there won’t be enough time to research and to tests on the final product. Involving the client into a discussion might lead to some risks for the company. For instance, after disclosing the material defect and the problems of the commodity, the client might decide to pull out at his/her pleasure and that can put the business into a risk. Onother possible outcome for customer involvement is the risk of mutual agreement which might not be reached based on the prices that are fixed. This can happen in the sense that after the disclosure of the defects, the client might need a higher reduction in the prices that were fixed earlier. Alternative 2: This alternative proposes shipping out the toys that passed the routine test without including the whistles. Then bring in external experts to assist in product development and training employees. Hold a press conference to communicate to the public and brief them on the way forward. Market the new improved product. And interact with customers on the website responding to all their queries. Advantages of alternative 2: Bringing in the external experts to assist in product development and training employees will help in improving production and applying the new technology methods will help in reducing toxicity to the environment and users. This will in return increase capabilities of a sustainable competitive advantage. Marketing the new improved product and interacting with customers on the website helps getting clients be actively involved in the products process. By responding to all their queries will help them understand that one show respect in the client’s autonomy which implies that you do not decide for clients, nor do you foster dependent attitudes and behaviour. This will help involve clients in building the business and checking on its progress. Disadvantages of alternative 2: The cost of bringing in external experts to assist in product development, training employees and marketing the new product will increase the cost of production There will be a possible risk of customers moving to competitors products because of the shortage of products during the change of product phase. Alternative 3: This alternative will involve pulling out whistles from the market and invest more in the toys that pass the routine tests and are less risky. Put up communication in the company website. Advantages of alternative 3: Pulling out the toxic whistles in the market will help in stopping the production of toxic whistles and this will help reduce the risk of tarnishing the reputation of the company in future. Producing less toxic products will help in improving the quality of the commodity. Disadvantages of alternative 3: The process of transforming the new product will have negative economic contributions to stake holders, employees and reduced revenue from sales. The new products might alter the taste and preferences of the consumer. This therefore might make the client to prefer another company or commodity thus reducing the business operation. A1C. Discuss the financial, legal, and ethical considerations of each alternative Alternative 1: Financial, Legal and Ethical considerations. Financial: The financial effect of any business is always the biggest consideration while making a new decision. Since every business made with main aim of making profit, the consideration financially should be based on the output cost in relation to the input cost. In this case, the cost of reproducing new whistle with little lead components is $100,000 which can be avoided in case some measures are taken. By involving clients to a discussion based on the problem of production error on the whistles, the cost of producing new product will be reduced. Client’s involvement in financial decision making will help to improve the managing operation of the business. Making the right financial consideration in the business will help in producing better products within the stipulated time which will help in retaining customers. Legal: Shipping out the toys that passed the routine test without including the whistles meet legal requirements by stopping the inappropriate products to the market. The legal consideration of the involvement of the clients in decision making will help them pay contribution in the development of the products. Clients in this case are responsible for the children who are the target of the products made. Therefore their legal right is also their responsibility over the children. Their contribution in the decision making acts as the defense for the children’s rights in usage of the products. This alternative does not mislead the customers. It informs them of delay in productions and reasons behind it. Ethical: The ethical consideration in this case is to let the customers participate fully in the products and make responsible decision and not simply to decide for them. Since ethics is based on the conduct and code of performance, it therefore means that the participation of the client in decision making can help control the effective trade. Alternative 2: Financial, Legal and Ethical considerations Financial: It estimates future costs, performance and profits to understand the risk of delaying success and uncertainties. Financial consideration for the second alternative which is to bring in the external experts to assist in product development and training employees will help in improving production and this will in return increase capabilities of a sustainable competitive advantage. Legal: This alternative meets the legal consideration as it seeks to improve the product production by applying the new technology methods which will help in reducing toxicity to the environment and users. It seeks to identify potential impacts and threats to the customers and builds a framework to allow business continuity. Ethical: This alternative implements ethical principles by delaying the success of the product. In return it focuses on long-term financial success of the product by developing it further. The ethical consideration here is manifested well on marketing the new improved product and interacting with customers on the website helps getting clients to be actively involved in the products process. This in addition helps in answering the question, how might the business best evaluate the rights, responsibilities, and welfare of all those involved and those who are affected by the decision, including the welfare of the consumers. Alternative 3: Financial: Financial consideration for the third alternative which is pulling out the toxic whistles in the market will help in stopping the production of toxic whistles and in addition help reduce the risk of tarnishing the reputation of the company in future. Producing less toxic products will help in improving the quality of the commodity and understand the natural style of the business which is to enable the financial stability of the business. Rather than increasing sales and clientele, this alternative considers avoiding risks of more losses by pulling the product away from the market. Legal: the alternative legal consideration is based on the performance of the company as outlined in the company’s Act. Based on the ethical consideration producing less toxic products will help in reducing consumer risk and avoiding legal battles with the consumers. This consideration meets the legal and regulatory requirements by ensuring safety of customers, employees and environment as a whole. Ethical: This alternative discloses known safety hazards and avoids negative consequences to the consumer by stopping the production of the products. The ethical decision made in this case is considering the amount of lead to be used in the manufacturing of the whistle. 2. Recommend one of the three possible decision alternatives 2a. Justify your recommendation. I recommend alternative 2 as this is based on expected long-term results and problem solving via decision making method policies. This alternative is appropriate for this company, because there is need for time to consolidate turbulent events until there is change in or more clarity about the production. It is comfortable for even-long term strategy in mature rather stable environment. By gathering and storing customer data, and then using business intelligence to making information and making knowledge by use of knowledge management systems a company improves its knowledge about its clients and hence a positive economic growth (Angela Haran, 2005) This method deals attempts to resuscitate or revive the company through a combination of general cut backs, costs and consolidation of new expertise and technologies. Although difficult when done very effectively it can succeed in both retaining key employees and revitalizing the company. The central focus of this strategy is to build and improve the company’s position and competitive advantage. With its dynamic developments to be applied, the company will continue to attract customers and defend against competitive forces better than its rivals. This will involve building uniquely strong or distinctive competencies and using them to maintain a competitive edge over rivals. Some of these distinctive competencies are superior technology and product features, better manufacturing technology and skills, superior sales and distribution capabilities and better customer service and convenience. Implementing this alternative will require appealing to a broad cross-section of the market through offering differentiating features that makes customers willing to pay premium prices, e.g., superior technology, quality, prestige, special features, service and convenience. Success with this alternative features are hard and expensive for competitors to duplicate. This alternative is further favored by the fact that, product innovations and technological change are rapid and competition emphasizes the latest product features. 2b. Analyze how your recommendation could affect customer relationships. For having successful Customer relationship, the company should learn about the habits and requirements of their customers for predicting future buying models and finding new chances to add value to the relationship Lucy Fusaro, (1999). Customer relationship analysis predicts the needs of the customers by analyzing their data and helps the company approve their needs and predict their future needs and hence make them happier. Alternative 2 identifies the rights of the customers; it communicates to them the crisis, the process to manage it and transforming the product reviewed. It focuses on the customers’ expectations and avoids intense reaction by responding to all their queries in the press conference and on their website. By using communication technologies company improves interaction between them and customers. It further examines the potential of improving the product to what the customers need without putting them at risk. It comes up with flexible plans and work with experts to develop user and environmental friendly products. Ensuring the whole process is transparent in the eyes of the public. This will enable the customers to trust the company has their best interest at thought. After coming up with suitable combinations, they produce final product to be introduced to the market. This product goes through tests to ensure all the standards have been met and it will not be hazardous to the users. It is then made available to the public and marketed emphasizing on the improvements compared to the earlier one. As a new product with enough publication it will capture the interest of the customers hence increase the sales potential. Data is collected from the sales to monitor the reception in the market. The website is open for customers to share the thoughts on the new product, and questionnaires are filled and this feedback is analyzed and communicated back to the community. At this point the company discusses results and reports with the customers and analyzes the final choices to further improve the product. This interaction ensures that the customers do not move to other competitors. Hence we can say the higher the satisfaction level the higher the sentimental attachment. Finally the company increases marketing of the product also gauging the satisfaction of the customers from the analyzed reports that are continuously compiled. 2c. discuss the role of social responsibility in your decision-making process. Corporate Social Responsibility or CSR has been defined by Lord Holme and Richard publication as “the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large". For any company’s success in today’s competitive business world, social responsibility must grow along other competitions. A business with successful social responsibility will increase in sales, customer satisfaction and finally the victory of the business. Alternative 2, takes into consideration the company’s social responsibility. It tries to create a positive impact on society as it makes it business decisions. It aims to improve the management of people and the impact on society. It brings a balance between the society and the ecosystem. By reducing/ stopping the use of lead, it takes care of the general health of the society and the environment. By applying new skills and technologies it offers employment opportunity and eventually improves the skills of its employees. As it progresses to improve the final product it aims to maintain a balance between the economy and the ecosystem. It not only pertains to the business growth of the company but also to everyone whose action impacts the environment. This responsibility is active by directly avoiding exposure to health hazards’, and by performing activities that directly advance social goals through interaction between the customer and the company in media communication. B. Importance of ethical decision making 1. Discuss two strategies that the company could adopt to ensure that ethical decision making takes place at all levels of the organization. A code of ethics is an important part of a company’s culture as it relates to how it conducts business for the greater good of its customers, suppliers, stakeholders, employees and the society as a whole. It is a set of guidelines or rules that the company uses in decision making to choose what is right or wrong and ensures that business is conducted in a professional and socially acceptable manner with integrity in the business operation (Barr, 2011). Below are some of the strategies that could be employed by the company in order to ensure that ethical decision making takes place at all levels of the organization. Strategy 1: Establishing formal ethical systems in the organisation Establishing formal ethical systems in the organisation will ensure that ethical decision making takes place at all levels. This should start by offering Ethical leadership through the leaders as this leads to an ethical workplace. How people perceive leaders, their agendas, and their trustworthiness strongly influences the values and setting of priorities in an organization. The organization's mission, vision, and values should be established as they will ensure ethical working environment in the organization. Once the organization mission, vision, and values are established; then the organization should create, communicate, and implement the code of ethics which develops the formal ethical systems and establishes an ethical culture in the organization which helps to ensure that ethical decision making takes place at all levels of the organization. Clear and consistent standards, as exemplified by a code of ethics, are a necessary prerequisite to an ethical culture. The organization should ensure that the established code of ethics begins with a statement of the organization's core values, the principles that should drive the decision-making process, such as honesty, respect, compassion, integrity, courage, honor, and fairness. Code of ethics create the common understanding of what the organization means and expects when it requires employees, leaders, and boards to do the right thing. In addition, a formal code of ethics helps the employer and the employees make decisions more quickly by conforming to a set of rules to which everyone agrees. Strategy 2: Equipping the staff with skills, information and support The organization should hold regular training, workshops and seminars on courses that are in line with the organization’s operations. This will help institute a culture of offering employee’s satisfaction, company involvement where managers evaluate and monitor employees, dedication to the company, team work, questioning of individual and group performance. In addition, this practise will add standard of excellence and value added principle to the organization, offer change to product oriented approach that focuses on the quality of the product and help set new control systems in the company production and marketing strategies. This will eventually help the organization ensure that proper ethical decision making takes place at all levels of the organization. B2. Explain how the company could benefit from a code of ethics. A code of ethics builds trust and makes the company credible in all its operations, making it honest and with integrity. It creates a working environment that will make the company succeed in the long term. A code of ethics is never about the profitability of the company but about building public trust and being socially responsible. A code of ethics gives employees dignity and respect. All employees are treated in a fair and just manner as the code of ethics is applicable to all levels of employees. There is zero tolerance in its applicability. The employee is proud to be associated with the company which motivates him and in the long term increases productivity. The company develops a culture of honesty and openness where every employee can speak their mind when faced with problems or faced in a dilemma. The management of the company leads by example by promptly dealing with ethical matters as they occur. The company must comply with government rules, laws and regulations. The code of ethics acts as a guide for management to act responsibly when faced with difficult ethical situations. The management decisions will not be subjective and inconsistent with the code of ethics. New employees are acquainted with the company’s code of ethics as they join advising them as to what is expected of them ethically. This reduces employee turnover and employees become proud to work with a company that is honest. The company is protected against lawsuits; a code of ethics can be used as a defense in cases involving dismissal of employees due to unethical behavior. Its business decisions are always guided by its code of ethics. A code of ethics avoids conflicts of interest. Employees are not allowed to accept or offer gifts to business associates or use company resources for personal gain (Faulkner, 2008) B3. Analyze a code of ethics for another company of your choice to determine the components that are important to include in the development of a code of ethics. The following components are included in the code of ethics for a leading United States telecommunications services company, AT&T. Below are some of the analysed AT&T company's code of ethics which provide the components that are important to include in the development of a code of ethics for the toy company. Honest and ethical conduct. At AT&T, all the employees including directors must act with integrity, be honest and ethical and maintain confidentiality of all company information. Conflicts of interest: Personal interest of employees must not interfere with the interests of the company. Example a family member may not benefit from transactions of the related employee of the company. Disclosure: All financial officers including the Chief Financial Officer must be familiar with the disclosure requirements of the Securities Exchange Commission (SEC) and of the business and financial operations of the company. Compliance: All AT&T directors and employees must comply with the applicable government rules, laws and regulations as they relate to the company’s business. Employees must not profit from undisclosed information of the company. Reporting and Accountability: Any violation or potential violation of the code of ethics must be reported immediately for action to be taken immediately. Corporate Opportunities: at AT&T, employees are not allowed to personally benefit from use of company resources to access business opportunities that are meant for the company. They are only allowed to do so if the company has turned them down. This also includes the protection and proper use of company assets. When all of the above components are applied to the development of toy company code of ethics, it will help in impacting responsibility and commitment for company goals and objectives. This will eventually enhance the brand and company’s reputation by improving efficiency, reducing the risk of business disruption, and opening up of new opportunities driving innovation. Customers choose to conduct business with companies that conduct the highest ethical standard and by being socially responsible, the toy company will benefit in improving its company's capability to recruit, retain and motivate their workforce. This will interpret to the toy’s company expansion and increase in profit making. References Angela Haran, 2005, School of Computing Dublin Institute of Technology, Ireland, Development of a framework to retain Customers through Customer Relationship Management. AT&T Inc.(2010) Code of business conduct.. Retrieved february 2, 2013, http://www.att.com/Common/about_us/downloads/att_code_of_business_conduct.pdf Bransford, J. D., & Stein, B. S. (1984). The IDEAL problem solver, New York: Freeman Bairstow, N. Ethical Decision Making in Business BTB Whiteboard Asia/ Pacific. Barr, D, Campbell ,C. (2011). HEthics in Decision Making. Good Practice Guide.JInstitute of Business Ethics. Faulkner, L. (2008) Code of Ethics and Business Conduct. Pilot Lord Holme & Richard Watts, the World Business Council for Sustainable Development’s Publication, Making Good Business Sense Lucy Fusaro, (1999). The Evolution of Customer Relationship Management. From a Market of Millions to a Market of One Read More